The Fashion Industry Is Learning More And More About How You Spend, Thanks To AI – Forbes
Luxury fashion has often been synonymous with unparalleled quality and exclusivity. However, the sobering reality is that many high-end brands have fallen behind in the age of the digital revolution and e-commerce. This begs the question: how can luxury brands make up for lost ground and deliver the experiences needed to get ahead of the game?
The answer may not come from the fashion capitals London, Paris or Milan, but from technology capitals like Silicon Valley where the “next big thing” is Artificial Intelligence (AI), technologies capable of performing tasks normally requiring human intelligence.
Speaking to the importance of AI, Microsoft CEO Satya Nadella recently said: “We are on the cusp of a paradigm shift in computing that is like nothing we’ve seen in decades.” This paradigm shift is coming to all sectors, including retail. By 2020, IBM predicts that 85% of all customer interactions will be handled without a human agent. Players in luxury retail need to adapt to this trend if they are to thrive.
Having said that, what roles will AI play in luxury fashion? With an ever-increasing amount of data about sales and consumer preferences available, AI enables greater leverage to improve the retail experience in a way that appeals to the digitally-savvy affluent consumer. Here are three trends to watch for:
Deep learning is an AI application based around the idea that we should give machines access to data and let them learn for themselves. In luxury fashion, this means that machines will get better and better at learning about what makes consumers tick – their likes, dislikes and even idiosyncrasies.
One aspect of retail that appeals to many consumers is buying at the lowest possible price. In the case of LUXSENS, a Shanghai-based company, deep learning algorithms are already being used to find the best price for luxury bags.